On September 29, the U.S. Commodity Futures Trading Commission announced that it would issue an award of approximately $290,000 to whistleblowers for providing valuable information about violations of the Commodity Exchange Act. The award is provided if reporting leads to an enforcement action that results in more than $1 million in monetary sanctions. Press Release.
Commodities Exchange Act
CFTC Clarification Order on Effective Date for Swaps Regulations
On July 14, the CFTC issued an order clarifying the effective date of the provisions in the swap regulatory regime established by Title VII of the Dodd-Frank Act. The order provides temporary exemptions from certain provisions of the Commodities Exchange Act and will become effective on July 16. The order will expire upon the earlier of the effective date of final rules specified in the order or December 31. CFTC Release.
Treasury Notice of Proposed Determination on Foreign Exchange Swaps and Forwards
On April 29, Treasury issued a notice of proposed determination exempting foreign exchange swaps and forwards from the definition of “swap” under the Commodities Exchange Act. The proposed determination does not extend to other foreign exchange derivatives including foreign exchange options, currency swaps, and non-deliverable forwards. Foreign exchange swaps and forwards will remain subject to the Dodd-Frank Act’s trade reporting requirements and business standards. Comments must be submitted within 30 days after publication in the Federal Register. Treasury Fact Sheet. Proposed Determination.
CFTC Approves Box Office Receipt Contracts
On June 14, the CFTC found that the terms and conditions of the proposed Weekend Motion Picture Revenue futures and binary option contracts for the motion picture Takers, submitted by Media Derivatives, Inc., do not violate the Commodities Exchange Act or the CFTC’s regulations under the Act, and therefore approved the contracts. The CFTC found that the contracts are based on commodities, are not readily susceptible to manipulation and serve an economic hedging purpose. Release. Statement of the CFTC.